The Division of Enforcement, by any measure, had a successful year despite facing significant headwinds, according to its FY 2019 Annual Report. Success stems from a variety of factors, not just the number of cases or the amounts of money ordered in actions. Factors discussed in the Report include: Main street investors: The main street investor is a key focus of the Division. That focus is reflected in the Share Class Selection Disclosure Initiative which…

The Supreme Court granted certiorari in a case that may well have a very significant impact on the remedies available in Commission enforcement actions: Liu v. Securities and Exchange Commission, No. 18-1501 (Cert. granted Nov. 1, 2019). The question the Court agreed to resolve is: “Whether the Securities and Exchange Commission may seek and obtain disgorgement from a court as ‘equitable relief’ for a securities law violation even though this Court has determined that such…

A look forward; a look back: The Supreme Court agreed to determine if the Commission can seek and obtain disgorgement as equitable relief for violations of the federal securities laws. Liu v. SEC, No. 18-1501. This case is on is on appeal from the Ninth Circuit. It will be discussed in future articles. On August 21, 2019 the Commission published its Interpretation and Guidance Regarding the Applicability of the Proxy Rules to Proxy Voting Advice…

A look forward; a look back: The Supreme Court agreed to determine if the Commission can seek and obtain disgorgement as equitable relief for violations of the federal securities laws. Liu v. SEC, No. 18-1501. This case is on is on appeal from the Ninth Circuit. It will be discussed in future articles. On August 21, 2019 the Commission published its Interpretation and Guidance Regarding the Applicability of the Proxy Rules to Proxy Voting Advice…

Anti-corruption and FCPA enforcement has long been a priority for the Commission as well as the DOJ. Many of these cases, while within the jurisdiction of the U.S., involve foreign firms and nationals. An action disclosed by the DOJ earlier this week involving two U.K. residents is illustrative. U.S. v. Ahsani, No. 4:19-cr-00147 (S.D.Tx. Filed March 4, 2019). Cyrus Ahsani is the former CEO of a Monaco-based intermediary company that provided services for multinational firms…

Offering fraud actions, long a key staple of the SEC Enforcement Division, the DOJ and others, continue to proliferate despite repeated efforts to alert and educate investors. For example, on November 1, 2019, the SEC and Fordham University School of Law will host a community- based conference on financial fraud. Key topics will include fraudulent schemes that target victims by race, ethnicity, religion, gender, age and other associations (here). Other regulators and law…

Offering fraud actions, long a key staple of the SEC Enforcement Division, the DOJ and others, continue to proliferate despite repeated efforts to alert and educate investors. For example, on November 1, 2019, the SEC and Fordham University School of Law will host a community- based conference on financial fraud. Key topics will include fraudulent schemes that target victims by race, ethnicity, religion, gender, age and other associations (here). Other regulators and law…